The dollar experienced its best week against its rivals - as expected from the beginning of July. Fundamentally, gains in the Greenback were accompanied with a cautious deterioration in odds of a third rate cut from the Federal Reserve by year-end looking at Fed funds futures.
The yield on US government bonds rose, especially after a better-than-expected local 2Q GDP report.
This will be in the foreign interest against the Asian currencies of South Asia, such as Singapore and the Indian rupees. The former continues to see selling pressure in the aftermath of Singapore’s economy contracting by the most since 2012. This past week, USD/SGD also had to contend with domestic softer-than-expected headline CPI data, albeit core inflation was as expected.
In addition, the Philippines fluctuated relatively modestly against the dollar since the USD / PHP has been trying to find a path to key support since 2013. Fundamentally, Peso is grateful to the Philippine Central Bank because she said there was no hurry to cut interest rates.